Friday, 24 October 2014

TECHNOLOGY NEWS: America Movil says not in talks over T-Mobile US

MEXICO CITY (Reuters) - America Movil is not talking to anybody at this stage about a possible purchase of T-Mobile US, Chief Executive Daniel Hajj told a conference call on Friday.



Germany's Monthly Manager Magazin on Thursday said America Movil was a possible buyer of the company, citing people familiar with Deutsche Telekom.



Deutsche Telekom owns close to 67 percent of T-Mobile US.



(Reporting by Christine Murray)





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TOP NEWS Attacks in Egypt's Sinai kill more than 30 security personnel

By Yusri Mohamed

ISMAILIA (Reuters) - Two attacks in Egypt's Sinai Peninsula killed more than 30 security personnel on Friday, security sources said, in some of the worst anti-state violence since Islamist President Mohamed Mursi was overthrown last year.

Thirty people were killed in the first attack in the al-Kharouba area northwest of al-Arish, near the Gaza Strip, the sources said. Military helicopters transferred the dead and wounded to Cairo. Among them were several senior officers from the Second Field Army based in Ismailia, security sources said.

The car bomb attack targeted two armored vehicles at a checkpoint near an army installation, the sources said. They said the big explosion and high death toll were likely due to the vehicles being loaded with ammunition and heavy weapons.

Security officials gave conflicting accounts of the first attack, with one Sinai-based official saying a rocket-propelled grenade was used. More than 25 people were wounded.

Hours later, gunmen opened fire on a checkpoint in al-Arish, killing three members of the security forces, officials said.

The casualties were transported to Cairo by military helicopters, state news agency MENA reported.

There was no immediate claim of responsibility for either attack. Similar previous operations have been claimed by Egypt's most active militant group, Ansar Bayt al-Maqdis.

Though the vast peninsula has long been a security headache for Egypt and its neighbors, the removal of President Mursi of the Muslim Brotherhood brought the region new violence that has morphed into an Islamist insurgency

Security forces have been squaring off against militants who have killed hundreds of soldiers and police since the army toppled Mursi in July 2013 after mass protests against his rule.

Most attacks have been in Sinai, although militant groups have claimed responsibility over the past year for deadly bomb attacks on state installations in the Nile Delta and in Cairo.

The Brotherhood says it is peaceful and denies government claims it has links to the Sinai-based Islamist militants.

"COMBING OPERATION"

President Abdel Fattah al-Sisi convened the National Defence Council on Friday evening for an emergency meeting in response to what his office called "a terrorist attack".

Shortly after the second attack, Sinai residents reported that phone lines and Internet services had been cut.

Security sources said the communications shutdown coincided with the beginning of a military operation east of al-Arish in response to the attacks. Apache helicopters bombed areas south of the towns of Sheikh Zuwaid and Rafah, near the Gaza Strip, which sources said were believed to be "militant hideouts."

MENA said armed forces were "conducting a large-scale combing operation" involving military helicopters and special forces troops, but gave no further details.

This is not the first time in the 16 months since Mursi's overthrow when news of a deadly attack against security forces in the Sinai has been swiftly followed by official announcements about a fresh assault on militants.

Washington provides Cairo with military aid of around $1.3 billion annually. A partial suspension of aid following Mursi's ouster was relaxed in April, when the U.S. said it would deliver 10 Apache helicopters, which have not yet arrived in Egypt.

The Pentagon said at the time that aid would help Egypt's counter-terrorism operations in the Sinai.

Six soldiers were killed on Sunday by a roadside bomb southwest of al-Arish.

Security officials have expressed concern that Islamic State militants who control parts of Iraq and Syria have forged ties with radical Islamist groups in Egypt.

(Additional reporting by Omar Fahmy and Mostafa Hashem; Writing by Maggie Fick; Editing by Tom Heneghan and Gunna Dickson)

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TOP NEWS Fannie Mae settles shareholder lawsuit for $170 million

By Jonathan Stempel

NEW YORK (Reuters) - Fannie Mae (FNMA.OB) has reached a $170 million settlement of a lawsuit accusing it of misleading shareholders about its finances, risk management and mortgage exposure before it was seized by the U.S. government during the 2008 financial crisis.

The settlement, which requires court approval, was disclosed in a Friday filing with the U.S. District Court in Manhattan.

It resolves shareholder allegations that Fannie Mae defrauded shareholders and inflated its stock by issuing false and misleading statements about its internal controls, capitalization, accounting, and exposure to subprime and low-documentation "Alt-A" mortgages.

The settlement allocates $123.8 million to common stockholders and $46.2 million to preferred stockholders between Nov. 8, 2006 and Sept. 5, 2008.

Fannie Mae's market value peaked during that period at more than $60 billion. It is now $2.71 billion.

"We are pleased to put this matter behind us," Joseph Grassi, Fannie Mae's interim general counsel, said in a statement. "This is another sign of progress as Fannie Mae continues our focus on serving the market and helping lenders make mortgage credit available to qualified borrowers."

The government seized Fannie Mae and the smaller Freddie Mac (FMCC.OB) on Sept. 7, 2008, and put them into a conservatorship under the Federal Housing Finance Agency, where they remain.

Fannie Mae and Freddie Mac together drew about $187.5 billion of bailout funds, but have returned roughly $218.7 billion to taxpayers in the form of dividends.

The lead plaintiffs suing Fannie Mae are the Massachusetts Pension Reserves Investment Management Board, the State-Boston Retirement Board and the Tennessee Consolidated Retirement System, and are seeking class-action status.

They said the settlement averts potential "numerous and substantial risks" of continuing the lawsuit after similar litigation against Freddie Mac was dismissed last year.

"We're extremely pleased with the results, particularly in light of the dismissal of a similar lawsuit against Fannie Mae's sibling company, Freddie Mac," Daniel Greene, the chairman of State-Boston, said in a statement.

The law firms Labaton Sucharow and Berman DeValerio, which represent common stockholders, and Kaplan Fox & Kilsheimer, which represents preferred stockholders, plan to seek fees of as much as 20 percent of the settlement fund, court papers show.

A separate lawsuit over Fannie Mae's disclosures was brought in 2011 by the U.S. Securities and Exchange Commission against former Chief Executive Officer Daniel Mudd and former Chief Risk Officer Enrico Dallavecchia, and remains pending.

The SEC filed a similar lawsuit against former Freddie Mac officials, including onetime Chief Executive Officer Richard Syron.

The case is In re: Fannie Mae 2008 Securities Litigation, U.S. District Court, Southern District of New York, No. 08-07831.

(Reporting by Jonathan Stempel in New York; Editing by Chris Reese and Alan Crosby)



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TECHNOLOGY NEWS: Google's Pichai to oversee major products and services: blog

SAN FRANCISCO (Reuters) - Google Inc Chief Executive Officer Larry Page has put Sundar Pichai, one of his key lieutenants, in charge of the Internet company's products, according to technology blog Re/code.



The India-born executive will have oversight over products such as search, maps, Google+, commerce, advertising and infrastructure. Six executives who previously reported to Page, including the heads of research, social media and search, will now report to Pichai, Re/code reported citing an internal memo.



The move puts Pichai in charge of many of Google's key services, including its core search and advertising units.



Pichai, who has risen rapidly through the ranks since joining Google in 2004, is viewed by many industry insiders as potential CEO material.



(Reporting by Edwin Chan. Editing by Andre Grenon)





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TECHNOLOGY NEWS: U.S. TV startup Roku to confidentially file for IPO: WSJ

(Reuters) - U.S. TV startup Roku Inc is working on plans to confidentially file for an initial public offering, the Wall Street Journal reported, citing people familiar with the matter.



Roku has been working with investment banks, including Bank of America Merrill Lynch and Citigroup Inc, to prepare for a potential offering that could raise as much as $150 million, the Journal said.



The company, which makes set-top boxes that connect TVs to the Internet, did not immediately respond to emails seeking comment.



The timing of any deal is not yet set, and it is also not yet clear what valuation Roku might seek, the financial daily reported.



Roku competes with Apple Inc's (AAPL.O) Apple TV and Amazon.com Inc (AMZN.O) in April unveiled a rival video streaming device dubbed Fire TV.



(Reporting By Sudarshan Varadhan in Bangalore; Editing by Savio D'Souza)





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TECHNOLOGY U.S. delays 'incentive' airwaves auction to early 2016

WASHINGTON (Reuters) - The U.S. Federal Communications Commission expects a major auction of low-frequency airwaves to be pushed back to early 2016 from mid-2015 because of its complexity and a pending court challenge, an FCC official said in a blog post on Friday.

The FCC is working on rules for the so-called incentive auction, in which wireless carriers would get the first opportunity since 2008 to purchase airwaves that are considered the "beach-front property" of radio spectrum for their reach and strength.

The auction is regarded as the FCC's most complex undertaking to date, balancing numerous economic, engineering and political considerations, including the need to woo broadcasters to give up the airwaves in the first place.

The delay gives the FCC more time to sway TV station owners to participate and T-Mobile US Inc to argue for bidding restrictions on larger rivals AT&T Inc and Verizon Communications Inc.

The National Association of Broadcasters, concerned about the potential impact on TV stations, has petitioned the U.S. Court of Appeals for the District of Columbia Circuit to review elements of the FCC's planned auction process.

The court has pushed back the deadline on final briefs in the case until late January 2015.

"We are confident we will prevail in court, but given the reality of that schedule, the complexity of designing and implementing the auction, and the need for all auction participants to have certainty well in advance of the auction, we now anticipate accepting applications for the auction in the fall of 2015 and starting the auction in early 2016," Gary Epstein, who chairs the FCC's Incentive Auction Task Force, wrote in the blog post.

The NAB rejected the notion that its lawsuit was the cause of the delay.

"We look forward to a speedy resolution of our legal challenge and a successful auction that preserves access to free and local TV for every American," NAB spokesman Dennis Wharton said in a statement.

The FCC plans a road show this fall to convince TV station owners to participate in the auction, for example by going off the air or sharing frequencies with another station.

Wireless carriers said the auction delay was unfortunate, but they added that they welcomed the effort to get it right.

Although all large carriers are expected to participate, AT&T so far has been the only one to pledge a specific amount, at least $9 billion.

BTIG analyst Walter Piecyk, in a note, said the delay could "re-open the door for T-Mobile and Sprint to argue for more favorable bidding conditions, particularly given that they have abandoned their merger discussions."

Verizon, AT&T, T-Mobile and satellite provider Dish Network Corp also plan to bid in the FCC's AWS-3 auction, which is scheduled for Nov. 3.

The anticipated start of the incentive auction was pushed back once before, to mid-2015 from 2014, because of its complexity.

(Reporting by Alina Selyukh; Editing by Chizu Nomiyama, Andre Grenon and Paul Simao)



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